Touchstone Investments’ Touchstone Advisors has agreed to acquire nine retail funds and four variable products from Sentinel Asset Management, an indirect wholly owned subsidiary of National Life Holding Company.
The transaction, expected to be completed in late 2017, will boost Touchstone’s assets under management to $20 billion.
Sentinel currently manages 11 mutual fund strategies with combined assets under management of $5.5 billion as of February 28.
Upon close of the deal, the purchased funds will be reorganized into either existing Touchstone funds or into newly created Touchstone funds, advised by Touchstone.
Among the acquired funds, the Sentinel Small Company and International Equity funds will be reorganized into newly created Touchstone funds and managed by the current Sentinel teams as part of Fort Washington Investment Advisors’ team of investment professionals.
Fort Washington is a wholly owned subsidiary of Western & Southern Financial, which wholly owns Touchstone Advisors.
The Sentinel Common Stock fund is anticipated to be reorganized into a newly created Touchstone fund that will be managed by a team led by Jamie Wilhelm, managing director and head of public equities at Fort Washington.
The Sentinel Balanced fund is expected to be reorganized into a newly created Touchstone fund that will be managed by a team led by Timothy J. Policinski, managing director and senior portfolio manager at Fort Washington.
The Sentinel Government Securities, Total Return Bond, Low Duration Bond, Multi-Asset Income and Sustainable Core Opportunities funds will be reorganized into existing Touchstone funds. They will continue to be managed by the existing Touchstone funds’ current investment professionals at Fort Washington, ClearArc Capital, and Rockefeller & Co.
The Sentinel Variable Products Balanced, Bond, Common Stock and Small Company funds will be reorganized into newly created Touchstone variable series funds.
Berkshire Capital Securities LLC and Morgan, Lewis & Bockius LLP are advising Sentinel on the transaction.
‘Touchstone remains dedicated to its sub-advised mutual fund approach and is committed to offering investment products based on partnerships with premier money managers. This acquisition reflects Touchstone’s continued commitment to providing investors with access to best-in-class institutional money managers through its mutual funds,’ said Steven M. Graziano, president of Touchstone Investments.